Cheveron abandoning California, moving to Texas

[y_p_w]

People look at these giant facilities and think they will never shut down. That is 100% untrue. Its a spreadsheet decision - does it make money or not. Its also about liability and risk, and there is much more of that in California for an oil company than in friendlier places.

Marathon shut there refinery down in California. It was not quite as big but close - 150K BPD vs 250K BPD for the Chevron facilities. Its not just California - several refineries have been shuttered. There old, and expensive to maintain. No one is building new ones for regulatory reasons. Might be cheaper to build a new one in Columbia or Guyana or Mexico and ship refined product instead.

2020-- "Elected officials, union leaders, industry representatives and environmentalists are expressing concern about the hundreds of workersset to lose their jobs at California's fourth-largest refinery in the coming months. That's after Marathon Petroleum announced over the weekend that it plans a permanent halt to processing crude oil at its Martinez plant."

https://www.contracosta.ca.gov/ArchiveCenter/ViewFile/Item/4556

I live in Contra Costa County and have driven near that refinery, which is still there and has been converted into a renewables processing facility. Granted this press release uses “closing” in a confusing way, but they mean the deal was completed.

https://ir.marathonpetroleum.com/in...artinez-Renewables-JV-with-Neste/default.aspx

Chevron is still in Richmond. Phillips 66 is still in Rodeo. PBF is still in Martinez. Chevron is still in San Ramon for that matter. They already moved about 2000 jobs to Houston at a time when they hadn’t decided to move HQ, and right now there don’t seem to be any plans to move any more jobs other than C-suite.

 

[SC Maintenance]

I live in Contra Costa County and have driven near that refinery, which is still there and has been converted into a renewables processing facility. Granted this press release uses “closing” in a confusing way, but they mean the deal was completed.

https://ir.marathonpetroleum.com/in...artinez-Renewables-JV-with-Neste/default.aspx

Chevron is still in Richmond. Phillips 66 is still in Rodeo. PBF is still in Martinez. Chevron is still in San Ramon for that matter. They already moved about 2000 jobs to Houston at a time when they hadn’t decided to move HQ, and right now there don’t seem to be any plans to move any more jobs other than C-suite.

Good post. I wonder how many people work at the renewables facility. 700M gallons a year is about 1/3 of what they were outputting with crude.

Yes Chevron is moving the C-suite but that is all thats there mostly and includes the entire support staff not just CEO. So thousands of lawyers, accountants and operations managers. Maybe many of those folks will continue to work remote in California?

 

[4WD]

This is supposed to be a 5 year plan. They have bought some land and still have offices from Chevron and Noble energy …
I think the land is under 80 acres - so they’d have to build taller than @XOM did - or it’s just a new R&D center on a parcel that size

 

[SC Maintenance]

This is supposed to be a 5 year plan. They have bought some land and still have offices from Chevron and Noble energy …
I think the land is under 80 acres - so they’d have to build taller than @XOM did - or it’s just a new R&D center on a parcel that size

 

[4WD]

View attachment 233533

They were selling this concept as Gen Pop … I said wut?
She says we want managers in with the general population …
Told her that’s a bit of a prison term - who knew?

 

[y_p_w]

This is supposed to be a 5 year plan. They have bought some land and still have offices from Chevron and Noble energy …
I think the land is under 80 acres - so they’d have to build taller than @XOM did - or it’s just a new R&D center on a parcel that size

R&D has never been at HQ. It's always been dispersed, but their biggest group has always been in Richmond, California on the grounds of their refinery. I believe they also have R&D in Europe and Asia.

 

[CKN]

I would think many companies are finding it very challenging to hire new employees when houses are essentially 1 million dollars. Our first house was located in Hawthorne, (where the Beach Boys were raised!) CA-a 10 minute drive from Chevron. We bought it in the 80's for $82,000 .00-doubled the size of it and sold it 10 years later for $250,000. Today-that exact house is worth a million dollars-and it's nothing special at all. Keep in mind the original part of the house (800 sq feet) was built right after World War 2.

 

[4WD]

R&D has never been at HQ. It's always been dispersed, but their biggest group has always been in Richmond, California on the grounds of their refinery. I believe they also have R&D in Europe and Asia.

Never said they were …
Still a good chance it moves to Houston …

 

[Nessism1]

I would think many companies are finding it very challenging to hire new employees when houses are essentially 1 million dollars. Our first house was located in Hawthorne, (where the Beach Boys were raised!) CA-a 10 minute drive from Chevron. We bought it in the 80's for $82,000 .00-doubled the size of it and sold it 10 years later for $250,000. Today-that exact house is worth a million dollars-and it's nothing special at all. Keep in mind the original part of the house (800 sq feet) was built right after World War 2.

I'm just down the road from Hawthorne! And my house is worth $1M. Honestly, it's a POS house too. 1250 sqft, built in 1952, needs WORK!

Nissan, Toyota, and Honda all setup their HQ's in this area. Back then, Gardena was home to many Japanese, and the carmakers found the area agreeable to set up shop. Fast forward to now, and Toyota relocated to Texas, and Nissan to Tennessee. Honda is the last one standing. I hope they stick around, they are a showcase company for this area. There are rumors, though...

 

[4WD]

I've been following along just as anyone else has. There are businesses leaving CA for TX. It's a free country & we can change domiciles or business locations as they see fit. Again, good to line the pockets of big corps. Unfortunately, TX has not been very well guarded for Health, Education, High Crime, One of the Highest Poverty Rates in the Nation, etc. That money they don't receive in taxes comes at a cost to the residence well being. Texas being on of the top business locations doesn't seem to have the trickle down economics that have been promised for decades.

2023 Article:
https://www.cnbc.com/2023/07/11/in-a-first-texas-is-no-longer-a-top-state-for-business.html

https://texasview.org/reasons-why-people-leave-texas/

https://www.statesman.com/story/new...ve-work-in-america-cnbc-business/70421581007/

This is not to disparage the great residence of TX, I visit TX & my home state of MO lands on the worst list too, but do want to point out the economic costs when having their specific policies. Good for the top but not so much at the bottom. This is why there is so much emphasis on the middle class since it's the best balanced (Think small businesses).

And there is something going on from the south of me that’s cost us $11B so far … Yesterday I was in Walmart and 80% there were not speaking English …

 

[BrendanC]

And there is something going on from the south of me that’s cost us $11B so far … Yesterday I was in Walmart and 80% there were not speaking English …

i was also at a walmart yesterday and every announcement was in spanish.

 

[ProbeGT]

Honestly, at this point, any large national/multi-national corporation that is still based in high-tax, high-reg, anti-business states like CA or NY is being so irrational that shareholders can make a case against board members for breach of fiduciary duties.

The trend will only continue to accelerate unless there is a major shift away from decades of failed policies in these failing states.

In the meantime, TX and FL will continue to prosper but at the same time suffer from the effects of rampant growth. I see this first hand. Massive construction projects everywhere you look, lots of dust. Fast growing demands on energy stretching grid capacity. Schools busting in the seams with all the imports' kids. Traffic jams getting worse by the day.

 

[Snagglefoot]

People look at these giant facilities and think they will never shut down. That is 100% untrue. Its a spreadsheet decision - does it make money or not. Its also about liability and risk, and there is much more of that in California for an oil company than in friendlier places.

Marathon shut there refinery down in California. It was not quite as big but close - 150K BPD vs 250K BPD for the Chevron facilities. Its not just California - several refineries have been shuttered. There old, and expensive to maintain. No one is building new ones for regulatory reasons. Might be cheaper to build a new one in Columbia or Guyana or Mexico and ship refined product instead.

2020-- "Elected officials, union leaders, industry representatives and environmentalists are expressing concern about the hundreds of workersset to lose their jobs at California's fourth-largest refinery in the coming months. That's after Marathon Petroleum announced over the weekend that it plans a permanent halt to processing crude oil at its Martinez plant."

https://www.contracosta.ca.gov/ArchiveCenter/ViewFile/Item/4556

Shipping refined product is a big business. The Gulf ships it out to the world and California ships it in, recently more from Canada. If you flew out of San Francisco last month, the plane was powered by jet fuel from Edmonton.

 

[Nessism1]

Shipping refined product is a big business. The Gulf ships it out to the world and California ships it in, recently more from Canada. If you flew out of San Francisco last month, the plane was powered by jet fuel from Edmonton.

California makes it really hard on producers in the state. It's funny how the state thinks it's better to import, than to use local natural resources.

 

[OLEJOE]

I thought TX had no taxes.

The context of my reply is to understand that just because we hear another language speaking over a Walmart speaker is not that big of a deal that some make it out to be. Those are your neighbors you're speaking about after all. And just b/c there are Spanish speaking folks that live in your state and have been for hundreds of years is no good reason to get worked up by hearing Spanish language in WM. I tried to show you that Texas has a very rich history of Spanish/Mexican occupance and the Europeans are who moved into the area afterwards. I mean my goodness Texas doesn't sound very welcoming for immigrants or native folks that speak a different language, unless bringing big business with them. Anyways, I figured we can agree to disagree but I guess some don't want to hear differing opinions.

Good day to bitogers this great Tuesday

Does that mean we have to give the rest of the nation back to the Indians ? They have been here since the get go.

 

[Nessism1]

Spanish over the PA system would annoy me greatly. Going to Walmart is like visiting a Third World country on the best of days, but that's taking it too far.

 

[OLEJOE]

I’m unwatching this thread because it has gotten away from its original topic. It’s gotten more toward a problem than irritates me to no end. I understand why Walmart would cater to 18 million new customers with plenty of handed out money to spend at taxpayer expense.

 

[Astro14]

That’s enough from the “culture warrior” perspective. Lock time.